Behind on your mortgage in California? The homeowner's checklist.
What to do in the first 72 hours, how the California foreclosure timeline works, the documents to gather, how to compare offers, and the red flags of foreclosure scams. Plain English, printable, free.
Read this first. General information, not legal or financial advice. Pacific Home Buyers is a cash home buyer, not a law firm, lender, or licensed real estate agent. We are also one of the options in this guide, so weigh what we say accordingly and get a second opinion from a free HUD-approved counselor.
Step 1
Where you are on the California foreclosure timeline
Most California home loans are foreclosed without going to court. The steps and minimum waiting periods are set by statute, which is why knowing your stage matters.
| Stage | What happens | What it means for you |
|---|---|---|
| Missed payments | Your servicer sends late notices and is expected to reach out about your options. Under federal servicing rules (Regulation X) that means live contact by about day 36 and written information about help by day 45. | Call back. This is the cheapest moment to fix things. |
| 120+ days behind | Federal rules generally bar a servicer from starting foreclosure until you are more than 120 days delinquent (12 CFR 1024.41). | If you have not applied for loss mitigation yet, do it now. |
| Before the notice of default | California requires the servicer to contact you, or diligently try, and then wait 30 days before recording a notice of default (Civil Code §2923.5). | Ask for that conversation and take notes: date, name, what was offered. |
| Notice of Default (NOD) | Recorded with the county. It states the amount needed to cure the default. A sale date cannot be set until at least three months after the NOD is recorded (Civil Code §2924). | It is public record. A sale is not imminent, but the clock is running. |
| Notice of Trustee's Sale | Sets the auction date. Notice must go out at least 20 days before the sale (Civil Code §2924f), and the sale can be no earlier than three months and 20 days after the NOD. | Now you have weeks, not months. Get a written payoff and reinstatement figure this week. |
| Reinstatement deadline | You can normally reinstate by paying the past-due amount plus permitted costs until five business days before the sale date (Civil Code §2924c). | Ask in writing for the exact figure and the date it is good through. It rises as fees accrue. |
| Sale day | The trustee auctions the property. After a sale the former owner generally receives a notice to vacate, and an eviction case can follow if you stay. | Sales can be postponed, and a complete loan-modification application can pause the process (Civil Code §2923.6). Do not plan around either. |
Timelines vary by loan and servicer. Confirm your actual dates on the recorded notices and with your servicer or trustee.
Step 2
Your first 72 hours
Print this page and tick things off. Most of it is phone calls and paperwork, and none of it costs money.
- Read every notice and write down the key dates: when the NOD was recorded and whether a sale date is set.
- Call your servicer and ask for a single point of contact. Take notes: date, name, what was said. The California Homeowner Bill of Rights explains the protections that may apply to you.
- Ask in writing for three things: the reinstatement amount good through a specific date, the full payoff amount, and the loss-mitigation application.
- Book a free session with a HUD-approved housing counselor.
- Look up your property on the Sacramento County Clerk-Recorder (or your county's site) and save copies of anything recorded against it.
- Keep the house insured and secured, especially if it is empty.
- Keep opening your mail. Missed notices are the most common way owners lose options.
- Do not sign a deed, a power of attorney, or any contract you have not had reviewed. Do not pay anyone upfront to "fix" foreclosure.
- Tell everyone in the house, including tenants, what is happening so nobody is surprised by a notice on the door.
- Line up a second opinion: a HUD counselor, a legal aid office, or an attorney.
Step 3
Documents to gather
You will need most of these whether you keep the house, list it, or sell it for cash. Collecting them now saves days later.
Loan and property
- Latest mortgage statement, plus the note and deed of trust if you have them
- Every notice from the servicer or trustee (NOD, notice of sale)
- Written payoff and reinstatement figures
- Property tax bill and homeowner insurance declarations page
- HOA statements and any special assessments
- Details of every other lien: second mortgage, HELOC, tax lien, judgment
- Photos of the property and a list of known repairs
You and your finances
- Government photo ID
- Two recent pay stubs or proof of other income
- Last two months of bank statements
- Last two years of tax returns
- A short hardship letter: what changed, and what is different now
- If you have tenants: leases, rent roll, deposit records
- If the owner has died: death certificate, probate letters or trust documents
Step 4
Your options, side by side
There is no single right answer. The best choice depends on your equity, your income, the condition of the house, and how much time you have.
| Option | Often a fit when | Watch out for |
|---|---|---|
| Reinstate | You can come up with all past-due payments plus costs. | Get the exact figure in writing. Fees keep growing until you pay. |
| Modification, repayment plan, or forbearance | Your income is back, or the hardship was temporary. | Needs a complete application and a written decision. A free HUD counselor can help you package it. |
| List with an agent | You have equity, the house is in decent shape, and you have several months. | Commissions, closing costs, repairs and showings. The timeline may not fit your sale date. |
| Short sale | You owe more than the house is worth. | Needs lender approval and can be slow. Ask a CPA about tax effects. |
| Cash sale to a direct buyer | You need speed and certainty, the house needs work, or you do not want showings. | Usually below full market value. Vet the buyer first (see the questions and red flags below). |
| Deed in lieu | Little or no equity, house in good condition, no other liens. | The lender must agree. Second mortgages and liens complicate it. |
| Bankruptcy | You need legal protection while you reorganize debts. | Talk to a bankruptcy attorney first. It has serious credit and legal consequences. |
Step 5
Compare every offer by what you take home
Headline prices are misleading. Fill this in for each path, including a listing, and compare the last line.
A lower offer with no fees can net about the same as a higher listing price once commissions, repairs and months of payments are counted. Run the numbers both ways before you decide.
Step 6
Questions to ask any buyer
Cash buyers are not all alike. Some buy for their own account, some resell the contract. These questions sort them out.
- Are you buying for yourself, or will you assign the contract to someone else?
- Can I see proof of funds?
- Who pays escrow, title and closing costs? Is that written into the contract?
- Which title and escrow company will handle it, and can I look them up first?
- Is there any fee, deposit, or "processing cost" I have to pay? (It should be no.)
- What happens if you don't close? What is the deposit and who keeps it?
- Under what conditions can the price change after I sign? Inspection re-trades are common.
- What is the exact closing date, and can it move if I need more time?
- Can I take the contract home and have an attorney or counselor read it before I sign?
- If I'm in foreclosure: do I have my right to cancel? For qualifying home equity sales it runs to midnight of the fifth business day, or 8 a.m. on the day of the sale if that comes first (Civil Code §1695.4).
- If you are offering a rent-back or buy-back: is it in the contract, in writing, with price and dates?
You should get clear written answers from any buyer, including us. If someone dodges, that is your answer.
Step 7
Foreclosure scam red flags
Owners in default are targeted. If you see any of these, stop and get a second opinion before signing.
Money up front
A foreclosure consultant cannot be paid until every promised service is done (Civil Code §2945.4). The FTC says the same for mortgage relief: never pay upfront. A real buyer is paid at closing, not before.
Guarantees
No one can guarantee they will stop a foreclosure or win you a modification.
"Sign the deed over temporarily"
Deeding the property to someone, adding them to title, or signing a power of attorney is how equity-skimming schemes start. A foreclosure consultant is barred from acquiring an interest in your home (Civil Code §2945.4(e)).
"Stop talking to your lender"
Anyone who tells you to stop contacting your servicer or your counselor is protecting their deal, not you.
Pressure
"Sign today or it disappears." A real cash offer is still there tomorrow, and you are entitled to time to review it.
Blank spaces and verbal promises
Everything, especially a rent-back or buy-back, belongs in the written contract.
Mystery closing
They will not name the title or escrow company, or want you to close somewhere you cannot verify.
No proof of funds, no track record
Ask for proof of funds and recent local purchases. Recorded deeds are public at the county recorder.
Printable version
Take the checklist with you
A clean PDF you can print, fill in and bring to a counselor or attorney.
- The timeline, first 72 hours and document list
- Options comparison and the net-proceeds worksheet
- Buyer questions, scam red flags and free resources
Prefer not to share contact details? Everything in the PDF is on this page, free to read and print.
FAQ
Common questions
How long do I have before a California foreclosure sale?
Can I stop a foreclosure by paying what I owe?
Do I have to pay someone to get foreclosure help?
What documents do I need to sell a house that is in default?
Is selling for cash better than listing?
Free help
Official resources and free help
None of these cost anything, and none of them are us.
- HUD-approved housing counselors (free)Find a counselor near you who can walk through your options.
- California Homeowner Bill of RightsWhich protections may apply and how to report violations.
- CFPB: options if you cannot pay your mortgagePlain-English overview of your choices.
- CFPB: complain about your servicerFile a complaint if your servicer is not following the rules.
- Legal Services of Northern CaliforniaFree legal help for eligible homeowners in the Sacramento region.
- California Courts Self-Help CenterCourt forms and guides in plain language.
- California DRE license lookupCheck whether an agent or broker is licensed.
- FTC: mortgage relief scamsWhat the scams look like and where to report them.
- Sacramento County Clerk-RecorderSearch recorded notices and see a buyer's recorded purchases.
If a cash sale makes sense
Want a written offer to compare?
Pacific Home Buyers is a local cash buyer for Sacramento and the Bay Area. A free walkthrough, a written offer, no fees or commissions, and no obligation. Use it as one more number on your worksheet.
Read our foreclosure guide for how a sale before the auction works.